Nigeria’s capital market has officially transitioned to a T+1 settlement cycle following the launch of the new framework by the Central Securities Clearing System (CSCS) Plc, marking a major milestone in the modernization of the country’s financial market infrastructure.
The transition, announced at a market-wide ceremony attended by regulators, exchange operators, custodians, registrars, stockbrokers, and institutional investors, moves the Nigerian market from a two-day settlement cycle (T+2) to a next-business-day settlement framework.
Under the new arrangement, securities transactions executed on a trading day will be settled on the following business day, significantly reducing the time between trade execution and final settlement.
Market stakeholders believe the development will improve market efficiency, boost liquidity, reduce settlement risks, and enhance the attractiveness of Nigeria’s capital market to both domestic and international investors.
### Landmark step in market modernization
Speaking at the launch event on June 1, Managing Director and Chief Executive Officer of CSCS, Shehu Shantali, described the transition as a defining moment in the evolution of Nigeria’s capital market and the culmination of decades of post-trade infrastructure development.
According to him, the migration to T+1 represents the latest phase in a modernization journey that began more than three decades ago.
He noted that before the introduction of electronic clearing and settlement systems, investors often waited between three and six months to receive share certificates following transactions.
Nigeria subsequently moved from manual, paper-based processes to a T+5 settlement cycle in 1997 following the commencement of CSCS operations, before progressing through successive improvements that have now culminated in the T+1 framework.
Shantali explained that the transition was supported by extensive industry-wide readiness assessments, technology upgrades, and investments in modern infrastructure, including API-enabled connectivity, straight-through processing systems, automated settlement mechanisms, custodian integration platforms, cybersecurity enhancements, and business continuity capabilities.
### Benefits expected across the market
Industry participants described the migration as a transformative development capable of strengthening the efficiency and competitiveness of Nigeria’s capital market.
Chief Executive Officer of NGX Group, Temi Popoola, stated that the initiative forms part of a broader strategy to deepen the market and support future growth opportunities, including larger listings, expanded participation in fixed-income markets, and the development of digital asset ecosystems.
Chairman of NGX Group, Dr. Umaru Kwairanga, noted that investors who sell securities will now receive proceeds on the next business day, while buyers will have their accounts debited within the same settlement timeframe.
According to him, the shorter settlement cycle will improve liquidity by accelerating the recycling of investment capital, while also reducing counterparty exposure and settlement-related risks.
He added that faster settlement processes will increase operational efficiency and enhance Nigeria’s competitiveness as an investment destination within the global capital market landscape.
### SEC hails move as a watershed moment
The Securities and Exchange Commission (SEC) also welcomed the successful implementation of the new framework.
Director-General of the SEC, Dr. Emomotimi Agama, described the transition as a watershed moment for Nigeria’s capital market, emphasizing that it reflects the industry’s commitment to global best practices, investor protection, operational efficiency, and long-term market development.
According to market regulators, shorter settlement cycles contribute to stronger market resilience by reducing systemic risks and improving confidence among both institutional and retail investors.
### Journey to T+1
Nigeria’s migration to T+1 followed a phased implementation programme coordinated by the SEC-led Settlement Cycle Review Committee.
The initiative began in 2023 when the committee was established to evaluate the readiness of the Nigerian market for shorter settlement periods and recommend implementation strategies.
Following extensive stakeholder consultations, market simulations, technology reviews, and operational assessments, the market successfully migrated from T+3 to T+2 settlement on November 28, 2025, creating an intermediate step toward the final transition.
Regulators had consistently maintained that the objective was to align Nigeria with major global markets such as the United States, Canada, and India, all of which have adopted shorter settlement cycles to improve efficiency and reduce systemic risk.
### Focus shifts to future innovations
With T+1 settlement now fully operational, attention is expected to shift toward the next phase of market innovation and infrastructure development.
Industry stakeholders believe future priorities will include deeper automation, enhanced digital market infrastructure, improved liquidity, and expanded access to capital market products.
Some market participants have also suggested that continued technological advancement could eventually pave the way for same-day settlement systems, as global financial markets continue to evolve toward faster and more efficient transaction processing.
The successful implementation of T+1 places Nigeria among a growing group of markets embracing international best practices and reinforces the country’s ambition to build a more efficient, transparent, and globally competitive capital market.
